Earlier, we discussed on the need to create a portfolio for each goal as we have multiple risk personalities. That is, risk attitude is different for each goal. Here, we discuss why it is crucial for couples to reconcile differences in risk attitude towards each goal before starting to invest as a family.

Different attitudes

For most families, life goals include buying a house, going on a vacation, saving for retirement and financing a child’s college education. It is typical for millennials and Gen Zs for both spouses to take part in investment decision processes. Hence, it is important to reconcile risk attitudes to each goal as it has a direct impact on the related portfolio’s asset allocation.

How should couples reconcile risk attitude for each goal? First, each of you should list the life goals you want to pursue. Then, you must agree on the goals you want to pursue as a family; three, goals are typically reasonable to pursue at a time after accounting for current lifestyle needs. Then, the time horizon for the goal should be fixed. Note, the time horizon for child’s education fund and retirement portfolio is likely to be unambiguous. The former is required when the child turns 18 and the latter at retirement.

The time horizon for other life goals may not be so easy to fix. Finally, you must prioritise goals. Other than a child’s education, the goal you consider as important may not align with that of your spouse. You must each list the agreed goals based on preferred order of importance. Your priority must align with spouse’s. If not, you must reconcile the differences by applying this rule: which one of the agreed goals cannot be postponed. That becomes family’s top priority goal.

Conclusion

Asset allocation for each goal becomes easy once differences in goal preferences are reconciled. The portfolio earmarked for top priority goal must be conservative to cut the risk of goal failure; it must have more bonds and less equity.

Retirement portfolio, the longest horizon goal, must have more equity and less bonds. All other goals must have an asset allocation that is a function of the annual savings you want to allocate to the goal, the time horizon and the amount required to achieve the goal.

(The author offers training programmes for individuals to manage their personal investments)

Published on April 20, 2026